Gediminas Jasionis
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Sinopec Corp. Pays A Large Premium For Daylight Energy Ltd (TSE:DAY) (PINK:DAYYF)

by Gediminas Jasionis Oct 11, 2011
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day_chart.pngDaylight Energy Ltd (TSE:DAY) (PINK:DAYYF) will be acquired by a large Chinese petroleum player, which made the current shareholders happy as DAY's share price doubled upon the announcement.

The stock price is up 110% and sticks close to $9.78 per share, which is the price offered by Sinopec Corp., a Chinese petroleum and petrochemical giant, that made the deal through one of their units.

The total worth of this transaction is around $2.1 billion. Sinopec must have seen a real gold vein in Daylight as the price offered carries a 43.6% premium over the average price of Daylight's shares over the preceding 60 days.

daylight_energy_logo.jpgThe news means there will be no more dividends to the shareholders of DAY beyond the last 5 cent payment which is scheduled to happen on October 17.

Daylight has only $1.24 billion net worth, thus the premium was paid for the potential of their properties. The company's assets include:

  • Elmworth area located in "Deep Basin" area of Alberta and Northeastern British Columbia, which is valued for natural gas;
  • Over 100 thousand acres of land in West Central Alberta;
  • Pembina Cardium conventional oil pool, in close proximity with Canada's largest conventional oilfield.

 

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